1. Chapter 12 Handling Objections Learning Objectives:
Develop a positive attitude toward objections.
Understand why prospects have sales resistance.
Learn how to uncover hidden concerns or questions.
Know the basic strategies for overcoming sales resistance.
Become familiar with the six-step plan for dealing with sales resistance.
Learn specific techniques to overcome objections.
Discover tactics to handle price concerns.

2. When Objections Occur Q: When do prospects object?
A: At any time during your sales call… from your first introduction up to the time you try and close.

3. Negotiation and the Relationship Sales Cycle
Negotiation in Selling
Successful sales presentations have twice as many objections as those presentations that are unsuccessful.
The negotiation process is a situation of mutual cooperation and mutual benefit.
Objections are a normal part of almost every conversation—not just in sales.
Relationship selling is a win-win proposition.
The decision to buy should be their idea.

4. Defining Objections Welcome objections!
An objection is anything the prospect says or does that presents an obstacle to the smooth completion of the sale
Learn to accept objections as a challenge, which when handled correctly will benefit you and your prospect
If you fear objections you will fumble your response, often causing you to fail
Welcome objections!

5. Psychological Reasons
Why Prospects Offer Resistance:
Psychological Reasons
Dislike decision making
Prefer old habits
Reluctance to give up something old for something new
Unpleasant past associations with you or your company
Resistance to domination
Perceived threat to self-image

6. Why Prospects Offer Resistance:
Logical Reasons
All or part of the presentation was misunderstood
Prospect is not convinced
Hidden reason - does not want to reveal real reason
Your product offering does not fit the prospect’s needs
Not all sales presentations end with a sale!

7. Types of Objections The Stall or Put-Off
Prospect is simply trying to avoid making a decision
You may not have presented a compelling reason to buy
Handling the stall is a test of your attitude
The Searcher
Often prospects just want more data. They have mentally decided they want to buy.
They just want to be convinced. So convince them!

8. Types of Objections The Hidden Objection
Prospect will not reveal the real reason
Often quite personal, so prospect feels uneasy
Like the iceberg lurking below the surface
The Stopper
An objection for which no solution can be found
Not every prospect is a fit for what you have to offer
The prospect has a legitimate reason for not buying… so move on.

9. Classify the Objection
Six basic categories of objections or sales resistance:
Product objection
Objection to the salesperson
Objection to your company
Don’t want to make a decision
Service objection
Price objection (possibly hiding real objection)

10. Handling Objections Tips for Handling Objections:
Keep the buyer’s attitude toward your product positive
Let buyers know you are on their side
Help with objections (show you really do care)
Do not get demanding, defensive, or hostile
Do not be satisfied with an excuse or stall
Bring out your arsenal of selling benefits and keep on presenting them!

11. 4 Strategies for Deciding When to Answer Objections
Anticipate and Forestall Objections
Incorporate objections and the answers directly into the presentation
You should be certain that the objection will arise
Prevents a confrontation and communicates objectivity
Objection may come up again—but it will have less impact the second time
Weave into your presentation factual answers to anticipated objections

12. 4 Strategies for Deciding When to Answer Objections
Postpone the Answer
Acknowledge the objection
Employ empathy
Gives you time to present more benefits
Allows you to maintain control
Gives you time to think about your response
Promise to get back to the question, and write it down
If prospect absolutely insists, then answer it when it comes up

13. 4 Strategies for Deciding When to Answer Objections
Answer Immediately
Allows the prospect to concentrate on the rest of the sales story
Shows the prospect your sincerity
Prevents prospects from inferring your inability to answer
Of all the objections, the price question should be answered after need, value, and benefits have been discussed.

14. 4 Strategies for Deciding When to Answer Objections
Do Not Answer an Excuse
Serious objections will be repeated
Not answering suggests that the excuse is not truly relevant (especially if it did not make sense to you)
Never try to answer an excuse
Acknowledging an excuse may create a real objection in the prospect’s mind.

15. A Negotiating Strategy for Handling Buyers’ Concerns
The Six-Step Process
Listen carefully; Hear the prospect out
Confirm your understanding of the objection
Clarify and classify the objection
Try to distinguish between genuine objections and excuses
Acknowledge the prospect’s point of
view
Restate or rephrase in your own words
Use words such as, “I understand how you feel”
Prepare the prospect for your answer

16. A Negotiating Strategy for Handling Buyers’ Concerns
Select a specific technique - base your decision on:
The prospect’s social style
Phase of the interview
The prospect’s mood
The number of times the objection has been raised
The type of objection (excuse versus a genuine concern or question)
Answer the objection - say just enough to answer it
Attempt to close - continue the presentation if you do not succeed

17. Seven Specific Techniques for Handling Objections
Feel, Felt, Found
Answer it by referring to a third party and using that experience as your “proof or testimony”
If the source is reliable or reputable, this can be especially successful
Provide new facts which allow the prospect to reevaluate your proposition
Compensation or Counterbalance Method
Admit the objection is valid
Describe some counterbalancing benefit
Relate a case history or testimonial—describe the experience of a client whose situation is similar to that of the prospect

18. Seven Specific Techniques for Handling Objections
Ask “Why?” or a Specific Question
Excellent for separating excuses from real objections
Ask questions that turn a broad general objection into a specific concern that can be answered

19. Seven Specific Techniques for Handling Objections
Deny the Objection
Direct denial involves refuting the opinion or belief of a prospect
Considered a high risk method of handling buyer resistance
If buyer resistance is not valid, there may be no other option than to refute it by providing accurate
information
Be firm in stating your beliefs; be sincere and
don’t be defensive

20. Seven Specific Techniques for Handling Objections
Indirect Denial - Sometimes prospect’s objection is valid, or at least accurate to some degree
Best approach is to acknowledge that the prospect is correct
It initially appears as agreement with the customer’s objection
If done in a natural, conversational way it will not offend the prospect
Rephrase or have the prospect rephrase
Blame yourself
Give the facts that answer the objection

21. Seven Specific Techniques for Handling Objections
The Boomerang Method
Initially agree with the concern but make a statement that turns it into a selling point
Convert the objection into a reason to buy
Works well when the prospect lacks complete information
Try the tongue-in-cheek method—an adaptation of the Boomerang Method

22. Seven Specific Techniques for Handling Objections
Curiosity Method
This method works because of your relationship-driven approach to professional selling
Prospects may be mentally comparing their present product or a competing product with yours
Demonstrate a “genuine” curiosity about their objection
After all, you have been asking questions all along
Deflection Method
Prospects sometimes purposely throw you off course
Specific social styles want to be in control
Listen to the concern, acknowledge it, but then simply move on
This method helps you stay on track with “your” presentation

23. A Mindset for Negotiating Price Resistance
Do add value with a cluster of satisfactions
Don’t apologize for the price
Don’t make price the focal point of your presentation
Do point out the relationship between price and quality
Do explain the difference between
price and cost

24. Four Methods for Overcoming the Price Question
Price Breakdown
Use the lowest common denominator
Break the price down—by day, week, or month
Your job is to establish value, not price
Look at the price-cost-value comparison over time
Talk about the initial price versus the ultimate costs.

25. Four Methods for Overcoming the Price Question
Presumption of Exclusivity
Stress the special features than only your product can offer
Sell quality and uniqueness if the buyer argues price
Must be an expert about your industry and product line
Make your price seem unimportant in comparison to the value received
Draw the picture clearly and convincingly—most buyers are fair-minded

26. Four Methods for Overcoming the Price Question
Comparison Method
When prospects are mentally comparing their present product with your product, make a complete comparison of the two
A demonstration can give a convincing answer to an objection
Comparison of your product’s features, advantages, and benefits against competitors
Do a comparison of long-run costs and savings
Use your company’s reputation to build trust and justify the higher price

27. Four Methods for Overcoming the Price Question
Sell Down Method
Present the best, most expensive product or service first
The common law of business balance prohibits paying a little and getting a lot
Be patient, focus on the benefits, and let the buyer tell you what features he can live without
There is a price point below which the buyer will not want to go
All prospects have a purchasing or buying range. Find it!